S1: PFMS is a platform for all direct benefit transfers. S2: PFMS is integrated with the Core Banking System of banks. Which statement(s) is/are correct? MCQ with Answer and Explanation

S1: PFMS is a platform for all direct benefit transfers. S2: PFMS is integrated with the Core Banking System of banks. Which statement(s) is/are correct?
A. S2 only
B. S1 only
C. Both S1 and S2
D. Neither S1 nor S2
Answer: Option C
Solution (By JKSSB Mock Tests)
PFMS is the primary platform for Direct Benefit Transfers (DBT) under various government schemes. It is integrated with the Core Banking Systems (CBS) of all banks to ensure seamless and direct credit to beneficiaries' accounts. Both are correct.

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Practice More Accountancy and Book Keeping Questions

Question #1
The term 'Net Realizable Value' means:
A. Replacement cost
B. Market price
C. Estimated selling price less costs to complete and sell
D. Original cost

Correct Answer: Option C


Explanation:
NRV = estimated selling price in ordinary course less estimated costs of completion and estimated costs to make the sale.

Question #2
Under the 'Reducing Balance Method' of depreciation, the asset's value:
A. Becomes negative
B. Remains constant
C. Becomes zero at the end of useful life
D. Never becomes zero

Correct Answer: Option D


Explanation:
Under WDV method, the book value never reaches zero, as depreciation is charged on reducing balance.

Question #3
Which of the following is NOT a feature of cash basis accounting?
A. Used by small professionals
B. Records only cash transactions
C. Simple to maintain
D. Complies with matching principle

Correct Answer: Option D


Explanation:
Cash basis does not follow the matching principle, as revenues and expenses are recorded only when cash is exchanged.